A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
The Bank of New Glarus scored 20 out of a possible 30 on Bankrate's test of earnings, beating the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for The Bank of New Glarus was 10.26 percent, above the national average of 9.28 percent.
The bank reported net income of $1.5 million on total equity of $29.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.13 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.